Insurance Linked Investments

The insurance-linked securities (ILS) market’s exposure to hurricane Michael is not expected to be material, according to Fitch Ratings, although some losses will fall to collateralized reinsurance and quota shares exposed to the lower layers of programs covering the affected region.

The sale of the world’s largest insurance-linked securities (ILS) and reinsurance linked investment manager Nephila Capital to re/insurer Markel is set to net part owner Man Group $130 million for its 18.5% stake in the ILS fund manager.

The main rating agencies for the insurance and reinsurance sector all agree that the insurance-linked securities (ILS) market and alternative capital is set to grow in importance, scope and overall in size.

All of the catastrophe related loss activity witnessed around the globe so far in 2018, including this weeks impacts from hurricane Michael, will still be absorbed by the combined earnings of insurance and reinsurance firms, according to Standard & Poor’s.

Hurricane Michael will result in an insurance and reinsurance market loss of close to $8 billion from wind and storm surge, excluding NFIP losses, according to catastrophe risk modelling specialists Karen Clark & Co.

The reinsurance market and as a result some collateralized providers of reinsurance capital may take a greater share of losses from hurricane Michael’s Florida and beyond impacts than they did for last month’s hurricane Florence, according to analysts.

Langhorne Re, the joint-venture, third-party capital backed life and annuity reinsurance firm launched by Renaissance Re (RenRe) and Reinsurance Group of America (RGA), has appointed Steve Zonca to lead its U.S. subsidiary businesses.

Insurance-linked securities (ILS) funds that are either mutual funds or listed vehicles saw their prices decline less than the share prices of global insurance and reinsurance funds as hurricane Michael made its devastating Category 4 hit on Florida.

Hiscox Re & ILS, the reinsurance and insurance-linked securities (ILS) division of global re/insurer Hiscox, has appointed Liz Breeze as its new Chief Financial Officer (CFO), a role she has been interim in since June.

Reinsurance broker Willis Re has hired former PartnerRe Director of Capital Markets Edward Torres to a role that will see him focused on structured transactions and legacy liability risk transfer, areas the broker sees as relevant to capital markets expansion into insurance risk.